A fast-growing commercial vehicle body building firm based in Newcastle-under-Lyme is on course to safeguard 17 jobs following a deal to acquire Car Comm Aid.
Headed up by directors Russell Adams and Stuart Harle, Fast Line Bodies Limited specialises in the manufacture of bodywork for a range of vehicles, from 3.5tonne to 26 tonne rigid trucks and specialist trailers.
The principal shareholder, Russell Adams, is a former director of Congleton-based Boalloy Holding Limited. Russell and Stuart have used their expertise and contacts in the industry to generate a significant order book for the business since it was established at the start of 2009.
In order to support its continued expansion, Fast Line has now acquired the trade and assets of local vehicle repair and recovery provider Car-Comm Aid Limited. The deal provides Fast Line with a significantly larger site from which to operate and fulfil orders and allows the business to offer a full service to customers from initial body building to repair and refurbishment, utilising on-site shotblast and paint facilities.
Following the deal, Fast Line is expecting to expand in its first year of trading and achieve annual run rate of sales in excess of £2million by the middle of 2010. Sixteen further jobs will be created as part of the expansion.
The deal has been funded through a term loan from Lloyds TSB via the Enterprise Finance Guarantee Scheme. The business also secured an asset based lending (ABL) facility from Lloyds TSB Commercial Finance and support from Advantage West Midlands.
Gareth Edwards, regional manager at Lloyds TSB Commercial Finance, commented: “ABL is an increasingly attractive option for entrepreneurs who are setting up a new business, or trying to develop an established one. It is ideal for growing firms such as Fast Line Bodies because the facilities can be tailored and lending can be advanced against additional assets, as the company expands.”
Legal advice was provided by Knights LLP.
Ian Latham, corporate finance partner at the Stoke office of Baker Tilly, led the deal.
Mr Latham said:
“This is a great deal for Fast Line for a number of reasons. It gives the capacity required to expand, as well as providing the business with an immediate new service offering for customers. It is also good news for the local jobs market as it will safeguard jobs and create a number of positions which will utilise existing skills in the area. The commercial body building sector has had its problems in recent times but businesses, such as Fast Line, which focus on service and quality can be presented with opportunities.”
December 2009